Car insurance is generally mandatory according to law. People usually opt for an insurance provider that is either popular or referred to by friends or relatives and continue paying their biannual premium. They stick with the same provider for many years, which can sometimes result in excessive payments. However, you can save a substantial amount on car insurance through various strategies:
– Consolidate your insurance: By bundling different types of insurance with one company, you can avail significant discounts. For instance, I save $16 annually on my home insurance and $74 on my car insurance by merging them with the same provider.
– Consider the low mileage discount feature: If you use another car infrequently or prefer public transport, this could be beneficial for you. Depending on the insurance company, you must not exceed a predefined number of miles per year. In my case, it’s 7500 miles and sticking to it reduces my already low annual premium by $106.
– Participate in a defensive driving course: Contact your insurer to find eligible defensive driving courses that could lower your premium. For instance, my insurer informed me that completion of such a course would grant me a 5% annual discount on my premium.
– Maintain a clean driving record: Needless to say, staying accident and ticket-free for as long as possible will lower your insurance rates. For instance, we secured a $100 discount for an accident-free decade.
– Opt for bi-yearly or yearly payments: Insurers often allow multiple payment schedules for your convenience but include a convenience fee. If you pay twice a year or annually, you could avoid these fees. To make this manageable, divide your annual premium by 12 and save that amount monthly.
– Regularly compare rates: It’s advisable to compare rates with different insurers periodically. You might discover better rates available. However, before switching to a new insurer, verify their customer satisfaction ratings. It may not be worth switching to an insurer who doesn’t handle claims effectively.
Insurance savings may not always be a priority for everyone, but it should be as there are plenty of ways to reduce your premium. By exploring these strategies, you might notice a significant drop in your yearly insurance expenses. Investing a bit of time in making a few calls and potentially completing a defensive driving course could yield significant savings.
